Speaking on the Citi Breakfast Show, Dr Atuahene criticized the government-backed domestic debt exchange programme, suggesting it has facilitated a window for reckless borrowing. This, he argues, is putting undue strain on local banks and negatively impacting the stability of the Cedi.
"Ever since we went through the domestic debt exchange programme, the government has borrowed as if it’s nobody’s business," Dr Atuahene remarked. He expressed concern that the government’s borrowing strategy—using short-term funds to finance long-term projects—is unsustainable. "The way we are going, if we continue the trajectory that we are taking, the banks are going to be in trouble because the government is out of the financial market and it is not paying its outstanding debts."
Dr. Atuahene further highlighted that the government’s borrowing spree is depriving the private sector of essential capital, thereby stunting economic growth. He refuted claims of economic growth, suggesting that the figures do not reflect reality. "When I hear them say the economy is growing, from the figures available, I don’t see the growth anywhere because it is the private sector that grows the economy and not the government sector. Unfortunately, the private sector is deprived of capital and cannot expand business," he added.
The banking consultant's comments come amid growing concerns over the sustainability of the country's financial practices and the health of its banking sector. His warning emphasises the need for prudent fiscal management and the potential consequences of unrestrained borrowing.